Sequoyah, Inc What Is the Unit Product Cost Using Variable Costing?
A)

question 29

Multiple Choice

Sequoyah, Inc. reports the following information: $$\begin{array} { | l | r | l | } \hline \text { Units produced } & 540 & \text { units } \\\hline \text { Units sold } & 540 & \text { units } \\\hline \text { Sales price } & \$ 160 & \text { per unit } \\\hline \text { Direct materials } & \$ 30 & \text { per unit } \\\hline \text { Direct labor } & \$ 15 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 10 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 20,000 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 5 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 10,000 & \text { per year } \\\hline\end{array}$$ What is the unit product cost using variable costing?

• A) $60
• B) $82
• C) $55
• D) $105

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Definitions:

Best Predictor

The variable or factor most strongly associated with or capable of predicting the outcome of interest.

Calorie Content

The amount of energy in food or drink, measured in calories, that can be metabolized by the body.

Linear Effects

In modeling, the proportional change in an outcome resulting from a one-unit change in independent variables assuming all other variables are held constant.

Broad Scope

A wide range or extensive area of activity, consideration, or examination.